In the first quarter of 2025, China’s electric vehicle (EV) sector witnessed a remarkable surge, with domestic manufacturers leading the charge. Nearly 2.63 million units were registered, marking a year-on-year increase of 43.2%. This milestone represents the first time that EV sales have exceeded two million units in the opening quarter of any year. Among the standout performers were BYD, Geely, and Wuling, while Tesla faced challenges amidst intensifying competition. The battery-electric vehicles (BEVs) segment dominated, accounting for 58.5% of deliveries, while plug-in hybrids (PHEVs) claimed the remaining share. March saw the highest monthly sales volume, reflecting a robust start to the year.
The Chinese EV market demonstrated unprecedented growth during the first three months of 2025. According to data from EV Volumes, nearly 2.63 million EVs were registered, representing a significant 43.2% increase compared to the same period in the previous year. Notably, this was the first instance where quarterly EV deliveries surpassed the two-million-unit mark in the opening quarter of any year. Despite trailing behind the fourth quarter of 2024, March set a new record for monthly sales, reaching over 1.06 million units. Domestic brands played a pivotal role in driving this momentum, with BYD emerging as the leader.
BYD solidified its position as the top EV manufacturer, achieving 696,532 sales in the first quarter, an impressive 36.4% rise from the previous year. Although its market share slightly decreased to 26.5%, the company maintained dominance, particularly in the PHEV segment. Its models consistently ranked among the top sellers, though internal competition began to emerge. Meanwhile, Geely showcased strong performances across both BEV and PHEV markets, recording a staggering 274.3% growth year on year. With a total of 244,013 deliveries, Geely captured 9.3% of the market, significantly up from the prior year.
Wuling also made strides, selling 163,150 units primarily through its popular Mini model. Tesla, however, encountered difficulties, dropping two positions from the previous year to rank fourth. Sales grew minimally by 1.5%, totaling 134,886 units, and its market share fell to 5.1%. Other notable players included Li Auto, Xpeng, Chery, Leapmotor, Xiaomi, and Changan, each contributing uniquely to the vibrant landscape of China’s EV industry.
As the first quarter concluded, it became evident that consistency and innovation would be key factors in sustaining success within China’s competitive EV market. Brands like Chery and Leapmotor demonstrated substantial growth despite not featuring prominently in best-seller charts. Chery increased its volume by 163.1%, securing a 3.4% market share, while Leapmotor achieved a 144.4% year-on-year rise. These achievements highlight the dynamic nature of the market, where adaptability and strategic positioning remain crucial for long-term prosperity.
The first quarter of 2025 underscored the resilience and innovation of China’s EV manufacturers. Domestic brands continued to lead the charge, showcasing their ability to adapt and thrive in a rapidly evolving market. While some international players faced challenges, others capitalized on opportunities to strengthen their foothold. Looking ahead, the industry’s trajectory suggests continued growth, driven by technological advancements and increasing consumer demand for sustainable transportation solutions.
The Battle for Value: Understanding the Depreciation Crisis
The rapid depreciation of electric vehicles has become a focal point in discussions surrounding the automotive industry's transition to greener technologies. At the heart of this issue lies the Zero Emission Vehicle (ZEV) mandate, which imposes stringent sales quotas on manufacturers. To meet these targets, companies have resorted to deep discounts on new models, inadvertently eroding the residual values of used EVs.Industry insiders note that the average two-year-old EV retains merely 47% of its initial cost, marking a significant decline compared to previous years. This shift not only affects current owners but also deters potential buyers from entering the second-hand EV market. The underlying cause can be traced back to the financial penalties faced by manufacturers for failing to comply with ZEV regulations, compelling them to prioritize short-term sales over long-term asset retention.Regulatory Pressures Driving Market Dynamics
Under the ZEV mandate, automakers face escalating annual targets, culminating in a 100% commitment to zero-emission vehicles by 2035. Such ambitious goals necessitate substantial investments in marketing and incentives to boost consumer interest. However, this approach has led to unintended consequences, as evidenced by the £4 billion collective loss incurred by manufacturers last year due to excessive discounting.Moreover, recent policy changes, such as the introduction of car tax for EV owners, further complicate matters. Brands like Vauxhall and Abarth have responded by adjusting their pricing structures to remain competitive below the £40,000 threshold, adding another layer of complexity to the already volatile market environment. These strategic maneuvers underscore the delicate balance between regulatory compliance and commercial viability within the EV sector.Technological Advancements Accelerating Obsolescence
Another contributing factor to the declining resale value of EVs is the swift pace of technological innovation. Breakthroughs in battery efficiency and affordability render older models less desirable almost immediately after release. For instance, advancements in lithium-ion technology enable newer generations of EVs to offer superior range and performance at comparable or lower costs.Additionally, the influx of affordable alternatives from emerging markets, particularly China, intensifies competition among established players. This diversification of options presents consumers with more attractive propositions, thereby diminishing the appeal of pre-owned units. Consequently, the gap between new and used EV prices widens, exacerbating the challenges faced by dealerships and private sellers alike.A Bright Spot Amidst Decline: Older Models Show Resilience
Despite the bleak outlook for younger EVs, there exists a silver lining for those aged three to five years. Auction data reveals that these vehicles exhibit relatively stable pricing patterns, with only a modest 15% decrease observed over the same timeframe. Experts attribute this stability to their detachment from ongoing promotional campaigns and alignment with distinct customer segments seeking reliable yet economical solutions.Philip Nothard, insight director at Cox Automotive Europe, emphasizes the importance of bolstering support mechanisms for the secondary EV market. He argues that reinforcing profitability through enhanced incentives could mitigate some adverse effects associated with rapid depreciation. By fostering greater confidence among stakeholders, the industry may restore equilibrium and ensure sustained growth in line with environmental objectives.Potential Pathways Forward: Policy Adjustments and Consumer Education
Looking ahead, policymakers must reassess existing frameworks governing EV adoption rates. Recent developments indicate flexibility in response to external pressures, exemplified by Prime Minister Keir Starmer's adjustments to Britain's sales targets following Donald Trump's tariff announcement. Furthermore, leaked correspondence suggests reconsideration of the so-called "Tesla Tax," aiming to reinvigorate demand for eco-friendly automobiles.Simultaneously, efforts should focus on educating prospective buyers about lifecycle costs and benefits tied to purchasing decisions involving EVs. Transparent communication regarding expected depreciation trends and available financing options can empower individuals to make informed choices aligned with personal priorities. Ultimately, collaborative initiatives across public and private sectors will pave the way toward a healthier, more sustainable automotive ecosystem.The MG S5 has carved out a unique niche in the competitive family SUV market. Blending affordability with practicality, it offers an impressive driving range and fast charging capabilities. Despite minor drawbacks such as a slightly firm ride and occasional infotainment glitches, the car remains a compelling choice for families seeking their first electric vehicle. Its spacious interior, equipped with modern technology, ensures comfort and convenience. The S5's stylish design hints at the brand’s futuristic aspirations while maintaining a familiar aesthetic that appeals to value-conscious buyers.
This electric SUV excels in offering substantial strengths that overshadow its limitations. With three trim levels catering to different needs, the S5 provides flexibility in terms of battery size and performance. While the entry-level model delivers adequate range and speed, higher trims enhance these attributes significantly. Moreover, the car's user-friendly features and generous warranty further solidify its appeal as a reliable and budget-friendly option compared to pricier competitors.
Performance and Practicality Redefined
The MG S5 distinguishes itself through its balanced approach to performance and usability. Available in three distinct trims, each variant caters to specific preferences regarding range and power. The base model boasts a respectable 211-mile range, while the long-range versions extend this to nearly 300 miles, ensuring peace of mind during longer journeys. Fast charging options allow drivers to replenish energy swiftly, making the S5 suitable for both daily commutes and extended trips.
Delving deeper into its performance credentials, the MG S5 impresses with its responsive steering and manageable turning radius, enhancing maneuverability in tight spaces. Drivers can customize their experience using various modes like Sport or Comfort, which adjust throttle responsiveness and steering weight accordingly. Additionally, one-pedal driving and adjustable brake regeneration settings provide enhanced control over deceleration and energy recovery. Although the ride quality may feel slightly firm at times, it never compromises passenger comfort significantly, particularly for children seated in the rear.
Convenience Meets Connectivity
Inside the MG S5, passengers enjoy ample space and thoughtful amenities designed to maximize convenience. The cabin accommodates adults comfortably, featuring deep side windows for optimal visibility and wide-opening rear doors for effortless access. Storage solutions abound, from a generously sized boot capable of expanding to accommodate larger items to well-placed cup holders and charging ports within reach. These elements combine to create a practical environment ideal for family life.
Technological integration enhances the overall user experience, although some areas warrant improvement. The infotainment system showcases advancements over previous models, boasting a large touchscreen interface complemented by physical buttons for essential functions. Wireless connectivity options add versatility, though occasional dropouts in Apple CarPlay functionality detract from seamless operation. Despite minor shortcomings, the inclusion of apps for remote vehicle management and entertainment during charging sessions underscores the brand's commitment to innovation. Furthermore, comprehensive safety systems and driver assistance features come standard across all trims, reinforcing the S5's position as a dependable companion on the road.